26 Oct 2010 17:01
Speymill Macau Property Fund Limited ("the Company")
Issue of Circular
26 October 2010
The Company is today sending a circular to shareholders dated 26 October 2010 ("Circular") providing information on two proposals as set out below.
(1) To adopt a new investment policy under which the Company will cease new investment activity and seek to realise, in an orderly manner, the Company's remaining investments with a view to returning the net proceeds to shareholders. It should be emphasised that the proposed New Investment Policy will not mandate the Board to conduct any form of "fire sale" or dispose of investments within any given timescale. Instead, although mandated to sell investments, the Company will only do so at a time and at a price which it considers to be to the best advantage of the Company and its shareholders.
(2) To introduce a Directors' incentive plan. Broadly, this plan has been designed to reflect two things. First, that since the New Board was appointed it has been integrally involved in the appraisal of the Company's investment portfolio and has undertaken a number of initiatives, as a result of which the Board has collectively devoted substantially more time to the affairs of the Company than one would normally expect from a totally non-executive Board. Secondly, that this will continue in the future, particularly when the appointment of the Investment Manager terminates, as the New Board will be primarily responsible for considering and implementing the realisation strategy should Shareholders approve the New Investment Policy. Accordingly, should the Plan be approved by shareholders, the Board will receive an immediate payment of 0.6% of the announced net asset value as at 30 June 2010 and 0.6% of any future distributions made by the Company during its life, payable at the time of distribution.
The Circular contains further background information relating to these matters and sets out the detail of the new incentive plan. The Circular also contains a notice convening an Extraordinary General Meeting of the Company's shareholders to be held at 11.00 a.m. on 19 November 2010, at which ordinary resolutions will be proposed to approve the new investment policy and the Directors incentive plan. A copy of the Circular is, or will shortly be, available on the Company's website www.speymillmacau.com.
Ends
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